Long

Accumulation Phase with Bitcoin

Updated

Bitcoin will continnue decline until we reach our support lines at about $6950. The supply is being absorbed this is an indication that the downtrend might come to an end which is near our support lines. I expect it to make higher lows from there on.

Note

RSI is making higher lows since February

Note

Here is another chart which indicate 7K being our support as well

For more information about volume declining, read here: rediff.com/money/special/trading-volume-what-it-reveals-about-the-market/20090703.htm

Note

Phase A = Stopping the prior downtrend, the volume in this phase will be high

Phase B = Phase B serves the purpose of "Building a Cause", the volume decreases as "smart money" are absorbing the supply of the market. It is critical for this Phase to have a diminishing volume as this will be our indicator for the next future movement

Phase C = A decisive test of the remaining supply, allowing "smart money" to ascertain whether its ready to move up ( During Phase C, we'll see whether our "bounce price" (7K) is accurate or not )

Phase D = The results of our analysis starts showing up here, of whether there is consistent dominance of demand over supply

Phase E = Bitcoin leaves the trading range & the demand is in full control of the price, and the trend up is obvious to everyone

jasonwhite

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